The impact on entrepreneurial orientation, market orientation and relationship quality on performance of business format franchisee firms in Sabah

The core of this paper aims to investigate the low-impact performance of Malaysia's franchising industry as compared to its competitors through effect of resourcebased factors entrepreneurial orientation, market orientation, absorptive capacity and social exchange factor relationship quality on firm performance among business format franchisees in Sabah, Malaysia . Lacking from the Malaysian context, previous literature consistently tested the resource-performance significance from the perspective of franchisors, causing the franchisees' perspectives being neglected. Thus, a total of 92 international and local franchisee firms were tested through questionnaire distribution using electronic and manual measures. The results revealed that quality of a franchisor-franchisee relationship built on trust, mutual commitment and norms affect their performance significantly. Additionally, firms in Sabah ought to be more autonomous in taking decisions on their franchisor's behalf, innovating and initiating competitive actions leads to superior firm performance. The paper's findings can direct current and future franchisees in focusing on being more proactive, innovative, autonomous and creating a healthier relationship with their franchisors to achieve performance